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Chapter 1 1 : Capital Budgeting and Time Value of Money Question # 5 : Time Value of Money ( 1 0 min ) An

Chapter 11: Capital Budgeting and Time Value of Money
Question #5: Time Value of Money (10min )
An NBA basketball player is offered the choice of two 4-year salary contracts, contract X for $2.85 million and contract Y for $2.72 million:
\table[[,Contract X,Contract Y],[End of year 1,$250,000,$550,000
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